Home Buying in Staten Island>Question Details

Princesskym5…, Home Buyer in Elizabeth, NJ

home buying question

Asked by Princesskym516, Elizabeth, NJ Sat Jul 19, 2014

I applied for a loan 2 months ago, but was denied. I was informed to pay down 2 bills to at least 1/2 of what it is now. Its down maybe $500. Each. Still have another $1000 to go, but my moms house will be sold by the end of next month. Are there other ways to get a loan? Does trying a diff mortgage company make sense? And if I pay off these bills, I wont have more than $5,000 for a down payment. Is that enough? First time home buyer w/ one income.

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Answers

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The amount of money you owe versus the amount you bring home is called your debt-to-income ratio, or DTI. Your DTI is the percentage of your monthly gross income that goes toward paying debts. Generally speaking, you don’t want a DTI higher than about 40%. If your DTI is too high, lenders may worry you can’t afford to make the monthly mortgage payments. You need to make payments on all of your debt, every month. Even if you owe thousands of dollars on credit cards from your days as a student, as long as payments are being made regularly and on time, you’re off to a good start. A good credit score goes a long way when applying for a mortgage.
0 votes Thank Flag Link Mon Oct 6, 2014
If you were denied and instructed to pay down two bills (debts/liabilities) then odds are it was due to a problem with your debt-to-income ratio. The fact that your file went all the way to underwriting prior to this being addressed is unacceptable in my book; this was most likely the result of a loan officer not doing his job with enough attention to detail. Unfortunately this happens more times than not....

The minimum down payment will be 3.5% of the sales price, unless you happen to be a veteran in which case the down payment would be 0%. If you have $5,000 to put down it will limit your purchase price to roughly $150,000.

I would be more than happy to review your scenario and see if I can get the numbers to work. I don't leave any stone unturned which is why my approval rating is so high. Please contact me at your earliest convenience so I can provide a 2nd opinion and help weigh-out your available options to ensure you receive a comfortable payment. I may be reached directly via phone or email; whichever is easiest for you. I look forward to helping!


Kind regards,


Paul Marzolla
Vice President
Direct: (201) 957-6768
Email: info@paulmarzolla.com
http://www.PaulMarzolla.com
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0 votes Thank Flag Link Wed Oct 1, 2014
Talking to other lenders is free so why not try -- it can't hurt you to ask.
0 votes Thank Flag Link Sat Jul 19, 2014
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